VB-G RAM G Act to replace MGNREGA from July 1, 2026; workdays raised to 125 but 40% cost shifted to states

📌 Summary:

• Union Ministry of Rural Development notified that the Viksit Bharat — Guarantee for Rozgar and Ajeevika Mission (Gramin), or VB–G RAM G Act, 2025, will come into force on July 1, 2026.

• The notification simultaneously repeals the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005 — ending a 21-year-old social safety net programme.

• Issued under Section 37(1) of the VB-G RAM G Act 2025; act bears parliamentary number 36 of 2025.

• Key benefit increase: Guaranteed workdays per rural household raised from 100 (MGNREGA) to 125 (VB-G RAM G).

• Funding shift — major change: For 11 specified states the centre-state share will be 90:10; for all other states it will be 60:40. Under MGNREGA the Centre paid the entire wage bill and 75% of material & administrative costs.

• Implication: ~40% of programme cost shifts to most states — major fiscal burden, especially for poorer states; could affect timely wage payment and asset creation.

• Political context: MGNREGA was the UPA government's flagship rural-jobs guarantee; its repeal represents a significant policy shift in India's rural welfare architecture under NDA.

• Concerns: Wage delay grievances, social audit weakening, and uneven implementation across rich vs poor states; depends on state fiscal capacity.

🎯 UPSC Relevance: GS2 — Welfare schemes, federal fiscal architecture, rural employment guarantee, right-to-work jurisprudence; GS3 — Rural economy, fiscal federalism.

📝 Prelims Facts:

• VB-G RAM G full form: Viksit Bharat — Guarantee for Rozgar and Ajeevika Mission (Gramin)

• Act: VB-G RAM G Act, 2025 (Act 36 of 2025); replaces MGNREGA, 2005

• Effective date: July 1, 2026 (notified under Sec 37(1))

• Workdays guarantee: 100 (MGNREGA) → 125 (VB-G RAM G)

• Cost-sharing: 90:10 for 11 specified states; 60:40 for others

• Implementing Ministry: Rural Development

🔑 Key Term: Cost-sharing pattern — Division of expenditure between Centre and states for centrally sponsored schemes; under VB-G RAM G, 11 'specified' states (likely NE/Himalayan/UTs) get 90:10 while general category states get 60:40, marking a major shift from MGNREGA's 100% central wage funding.